Tax Type
Retail Sales and Use Tax
Description
Topographical maps; plan /profile drawings for sewer and water pipe work
Topic
Appropriateness of Audit Methodology
Taxpayers' Remedies
Date Issued
03-19-1982
March 19, 1982
Re: §58-1118 Application/Use Tax
Dear ********************
This will reply to your letter of February 17, 1982 in which you petition for relief of use tax assessed against ***** as the result of a recent audit.
Facts
***********is an engineering consulting firm engaged in a number of public works projects. A major part of the design projects involves the preparation of plan and profile drawings for sewer and water pipe work.
Data for preparing these drawings may be obtained via on-site inspection by land surveyors, or by using aerial photographs to develop a topographical map which is developed by a third party. Once the drawings are completed, an engineer can determine the pipe location.
In conducting its audit, the Department assessed use tax on topographical "maps" of a site which were purchased from Incorporated. These maps consist of engineering tracings developed from aerial photographs of a given site.
Determination
§58-441.6(a) of the Code of Virginia exempts from the sales and use tax:
-
- Professional, insurance, or personal service transactions which involve sales as inconsequential elements for which no separate charges are made.
Based upon the information provided, ******** Incorporated, is providing a professional service, closely paralleling services provided by architects or surveyors. The object sought by********* in its transaction with*****is the professional expertise and knowledge of those translating the aerial photographs into engineering tracings ("maps"). The actual tangible personal property transferred is an inconsequential element of the transaction. Therefore, the charges from ******* Incorporated, are deemed charges for providing a service and are not subject to the tax under the provisions of Virginia Code §58-441.6(a).
Based upon the foregoing, your petition for correction is accepted and the audit will be adjusted accordingly.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner